The Downer EDI Limited (ASX: DOW) share price popped this morning after the company released its half-year performance report.
At the time of writing, Downer Group is approximately 2% higher trading at $5.45.
Downer EDI provides services to customers in transport, utilities, facilities, engineering, mining, construction, and maintenance (EC&M) in Australia and New Zealand.
The company employs approximately 52,000 people across more than 300 sites.
How did Downer EDI perform during HY21?
Downer experienced a 10.6% total revenue fall during the 6 months ended 31 December 2020. Total group revenue was $6.1 billion.
Statutory earnings before interest and tax also took at 10% hit falling to $180.4 million.
The company reported a $350.2 million cash flow which is significantly higher than the $4.5 million gained in the previous corresponding period (pcp).
More than half of this result was achieved via the acquisition of the remaining 12.2% interest in Spotless Group Holdings.
Compared to the pcp, Downer managed to save $675.1 million in total expenses which is a 10.6% savings.
Downer's earnings before interest, tax, depreciation and amortisation (EBITDA) for the period was $195.8 million.
The company will pay an interim dividend of 9.0 cents per share, unfranked (14.0 cents per share unfranked in the pcp), payable on 25 March 2021 to shareholders on the register at 25 February 2021.
Outlook
Downer will continue to focus on its Urban Services businesses. This involves working with companies that demonstrate strength and resilience. In addition, offering attractive medium and long-term growth opportunities.
Downer is also focussing on possessing a high proportion of government and government-related contracts. Further, Downer offers a capital-light, services-based business model to support low risk and predictable revenues.
As previously announced throughout the reporting period, Downer has entered agreements for the sale of its Downer Blasting Services, Spotless Laundries, and Open Cut Mining West businesses.
Downer concludes that there have been no extraordinary matters or circumstances that have arisen since the end of HY21 that have significantly affected or may significantly affect operations.
Over the previous 12 month period, the Downer share price has fallen close to 27%.
